Retaining employees is important for any company's bottom line. Gallup estimates that voluntary employee attrition costs companies more than $1 trillion annually due to the cost of training their replacements. It makes more sense than ever to have employee retention as a major goal for a company.
Managing employee job goals and expectations is something we are committed to at CAVU Human Capital Management. So, what sorts of benefits should a business offer its staffers to ensure that they want to stay on for years to come?
What is Employee Retention?
Employee retention is keeping your employees on staff for years to come rather than having them quit to work for one of your competitors. Any company must have a retention strategy in place. Otherwise, their turnover rates can be quite high. One of the main ways large companies compete with each other these days is through benefit packages since salary ranges are likely to be similar.
A high employee retention rate shows that your workers have a high level of job satisfaction. Companies with the right mix of enticing benefits are appreciated by their employees since the benefits can be part of what allows them to have a proper work-life balance.
Benefits of Retaining Employees
- Better Employee Loyalty: When employees know their employer cares about them, they're more likely to be loyal to the company and its goals.
- Lower Hiring Costs: Investing in already trained employees reduces hiring costs significantly.
- Veteran Workforce: The longer an employee stays with you, the more skills they gain, making them even more valuable to the company.
- Great Company Culture: If turnover rates are high, it can make your existing employees nervous and dissatisfied. When workers are happy and committed, it contributes to a more positive company culture.
- Improved Brand Reputation: Companies that can keep their employees around enjoy a better reputation. Unhappy former employees are a threat to your reputation.
- A More Connected Staff: Employees who have known each other for a long time often develop lasting friendships or relationships. Knowing each other for a long time contributes to better teamwork overall.
6 Benefits to Promote Better Employee Retention
1. Health Insurance
Traditional group health insurance is usually the main focus of any strategy to retain and keep employees happy. Workers want a plan with a low co-pay, low monthly out-of-pocket expenses for the policy, and one that has a large network of healthcare providers. When salaries are roughly similar between two competing companies, a potential employee will often choose the one that offers a better health insurance package.
2. Health Reimbursement Arrangement (HRA)
The HRA has become increasingly popular in recent years because it allows employers to retain full control of their health benefits costs. Under an HRA, employees receive a monthly allowance that they can spend on a list of medical expenses approved by the employer.
This can include things like the health insurance premium of the employee's choice, costs for prescription medications, and visits to their general practitioner.
The nice thing about an HRA is its customization options. Employers can control which options they want to reimburse, employee eligibility, and the amount of each employee's monthly benefit payment. Employers can provide some benefits on almost any budget. The employees can then select the best marketplace plan for them, making it a win-win for both sides.
3. Retirement Benefits
A large majority of employees want retirement benefits, but only about half of all employers in the US offer this. A 401K or a refined benefits plan can be a huge help when it comes to employee retention. The benefits of a retirement plan, such as a 401K with matching employer funds or a defined benefits plan, should be obvious. Employees are much less likely to stay there until retirement age if a company does not offer a retirement plan.
4. Remote Work Benefits
One thing that many employees learned during the pandemic is that there are tremendous benefits for them to work from home. Employees who work from home, full-time or part-time, spend less on fuel costs, time lost during the morning and evening commutes, or riding public transit to the office.
Remote workers should be offered the same medical and retirement benefits package as an in-person workforce. However, employers should also keep in mind that people working from home often pay out-of-pocket for internet and cell phone services. A monthly stipend to help pay for these expenses can be a significant benefit to remote employees.
5. Professional Development
Employees value benefits that allow them to increase their skill sets and therefore become more valuable to the company or receive new opportunities for advancement. Spending money on tuition reimbursement for job-related training or other professional development coursework can go a long way toward employee retention.
6. Health-Related Perks
A stipend for health and wellness perks can be another way to retain employees. Younger workers will especially appreciate a monthly stipend for a fitness club membership or similar health-related perks. Many fitness chains offer a corporate membership rate that can help reduce the company's costs while offering a nice perk for their employees.
Want to place more emphasis on your team's satisfaction and retention rates? Contact us at CAVA Human Capital Management to discuss employee retention benefits. We're ready to discuss actionable strategies to help you improve employee retention.